Nearly half of Indian travellers spend less than Rs 1 lakh per person on an international trip, while only 7-10% shell out more than Rs 5 lakh.New Delhi:

International travel may be booming among Indians, but extravagant spending remains the exception rather than the norm.

Nearly half of Indian outbound travellers spend less than Rs 1 lakh per person on an international trip, while only 7-10 per cent shell out more than Rs 5 lakh, according to a new survey by fintech firm Wise. The findings suggest that even as overseas travel becomes more mainstream, Indian travellers continue to keep a close eye on budgets.  

The survey paints a picture of a traveller who is increasingly willing to spend on experiences but remains deeply value-conscious. The most common spending bracket was Rs 50,000-Rs 1 lakh, accounting for nearly a quarter of respondents.  

Industry executives say this reflects a broader shift in consumer behaviour.

"Travel has moved from being aspirational to becoming a priority category of spending, particularly for younger consumers," said Abhinav Pathak, Co-founder and CEO of Escape Plan. According to him, people are travelling more frequently, planning trips more intentionally and increasingly viewing travel as an essential part of their lifestyle rather than an occasional luxury.

The survey suggests exactly that. While cost-consciousness remains strong, Indians are travelling more often and exploring a wider range of destinations.

Southeast Asia emerged as the clear favourite, attracting about one-third of outbound travellers. Europe and the Middle East followed at a distance, while Australia, New Zealand and East Asia are steadily gaining popularity. North America, meanwhile, remains largely aspirational, accounting for only 8 per cent of traveller preferences.  

Pathak said travellers are increasingly choosing shorter getaways, international long weekends and workcations instead of waiting for one large annual holiday. "People are willing to optimise spending elsewhere but continue to prioritise experiences, exploration and travel," he said.

The survey also found that Indian travellers remain surprisingly traditional when it comes to managing money overseas.

Despite India's rapid adoption of digital payments, cash exchange before departure remains the most popular forex option, used by 38-44 per cent of travellers. International debit and credit cards were the second most preferred method, while digital multi-currency accounts accounted for just 9 per cent of responses. ATM withdrawals abroad were the least preferred option.  

Another striking finding was the importance travellers place on reliability over perks. When choosing a travel card, global acceptability emerged as the most important factor by a wide margin. Zero forex markup ranked second, while lounge access and eSIM benefits trailed behind. Digital wallet compatibility attracted relatively limited interest.  

Pardeep Siwach, General Manager of Mayfair Spring Valley Resort Guwahati, said the findings show Indian travellers are becoming increasingly financially savvy. "Travellers are becoming more financially savvy than destination-driven, with value, forex convenience and policy changes increasingly shaping outbound travel decisions," he said.

According to Siwach, travellers are evaluating affordability and overall value much earlier in the planning process. The fact that nearly half spend under Rs 1 lakh per trip underlines the growing importance of value-conscious travel. "What is particularly interesting is that travellers are placing greater importance on reliability and ease rather than purely aspirational benefits," he added.

Taneia Bhardwaj, South Asia Expansion Lead at Wise, said, "Indian travellers are becoming more global, but the way they spend abroad is still catching up. What stood out in the report is that people care deeply about their travel budgets, but often have very little visibility into the exchange rate or markup applied when they pay overseas.

The survey also highlights a significant behavioural shift in booking patterns.

Indian travellers are almost evenly divided between planners and spontaneous travellers. Around 41 per cent book within a month of departure, while 42 per cent plan their trips one to three months in advance. Only one in 10 travellers books more than three months ahead, suggesting flexibility is increasingly shaping travel decisions.  

Generational differences were particularly visible. Gen Z travellers were the most spontaneous, while Gen X travellers were the most organised, with 60 per cent booking at least a month in advance. Millennials emerged as the most deliberate planners among working-age travellers.  

The survey also points to a growing impact of policy changes on consumer behaviour.

Following the reduction in Tax Collected at Source (TCS) on overseas travel to 2 per cent, nearly 80 per cent of respondents said they plan to increase their travel spending. The response was strongest among younger travellers and residents of eastern India.  

Nicky Sehwani, Chief Business Officer at InstaMoney, said affordability remains a key concern even as travel becomes a major lifestyle aspiration. "Travel is no longer viewed as a luxury reserved for a later date. It has become an important lifestyle aspiration for many Indians," he said.

According to Sehwani, rising airfares, accommodation costs and other travel expenses have increased demand for flexible financing solutions. More consumers, especially younger professionals, are opting to spread travel costs through manageable repayments rather than postpone vacations or dip into long-term savings.

Sehwani noted that financing is increasingly being used for experiences, not just essential purchases, helping consumers travel without disrupting broader financial goals.

The survey's regional findings offer further insight into how India's travel market is evolving. Travellers from eastern India emerged as the highest spenders, while those from the North and Central regions were more budget-conscious. Southern travellers stood out for their balanced spending patterns, often choosing premium but not ultra-luxury experiences.  

Siwach believes this trend could also benefit domestic tourism. "As travellers become more conscious of overall travel costs and seek greater value from every trip, there is a growing willingness to explore premium experiences closer to home," he said.

Instead of stretching budgets solely for international travel, many travellers are increasingly opting for high-quality domestic stays that offer comfort, wellness and immersive experiences, he added.

Taken together, the findings suggest that India's outbound travel boom is being driven not by lavish spending, but by smarter planning. Indians are travelling more frequently, embracing experiences over possessions and finding new ways to make holidays fit within their budgets.